Currently, point of sale (POS) systems generally approve all transactions and address fraudulent transactions well after the transaction has been completed. Most merchants will more often than not approve a majority of the transactions. If transactions are declined, they are declined without much intelligence. In determining whether to authorize a transaction, the current systems usually only focus on one factor: the customer's credit for that card, without regard to other factors and considerations. As a result, current systems do not accurately authorize and decline transactions, which result in inefficiencies, approval of fraudulent charges and lost revenue.
Other drawbacks may also be present.